In today's competitive global banking and financial economy, banks and financial institutions are faced with many difficult credit lending and market investment decisions, coupled with regulatory requirements. These decisions include determining returns and risks of market investments, riskiness of credit loads and debt, and determining asset and liability portfolio mix strategies. Such decisions might involve thousands or millions of potential alternatives and simulated results. Manually considering and evaluating each of them would be impractical or even impossible. A model can provide valuable assistance in incorporating relevant variables when analyzing decisions and in finding the best solutions for making decisions. Models capture the most important features of a problem and present them in a form that is easy to interpret. Additionally, models can often provide insights that intuition alone cannot.
Currently available methods require the user to understand advanced statistics, financial modeling, structural credit and market models, and mathematics in order to know what analysis to run on some existing data or to have the ability to interpret the raw numerical results. Furthermore, currently available methods do not automatically run the relevant analyses in an integrated fashion nor do they provide detailed descriptions in their reports coupled with the numerical results and charts for easy interpretation.
Therefore, there is need in the art for a system and method that can automatically run an intelligent set of statistical and analytical tests and compile those tests into an easily interpreted set of key risk indicator (KRI) reports and charts. These and other features and advantages of the present invention will be explained and will become obvious to one skilled in the art through the summary of the invention that follows.